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Digital Savings Account: All You Need to Know About It

Gone are those days of visiting your branch and clerical work of filling a new form to open an account. Today, the online saving account opening is much more comfortable. Thanks to advanced digital technology, online banking has moved on to its next-generation level of functioning.  You can sit back at your home and open a digital savings account online from your smartphone or laptop, and not only can you open an account but also transfer funds from your online bank account to another. 

Image Source: Shutterstock

Image Source: Shutterstock

Out of the many banking services that banks provide in general, a savings account is the most common type of account facility. The majority of the people using banking services have a savings bank account to simply save their earnings in a safe and secure environment offered by the bank.

Savings Account, and why do you need one?

Saving up is one of the most common and instinctive ideas of every modern middle-class family around the world. The idea being to guarantee a safety net in case of medical emergencies, educational requirements, and retirement plan for most individuals.  

A savings account is an instrument an account holder genrally opens with such and idea thus is is prudent to check that their income is deposited in a safe and secure institution such as a reputed bank. The bank takes responsibility for the security of the account holders’ deposits. A certain rate of interest is also fixed and paid on the sum deposited in the savings account. The rate of interest paid on the sum deposited in the savings account may vary from time to time as per the bank’s regulations. Currently, the rate of interest on savings account deposits ranges from 4% – 6%. Opening a savings account has become easier as people can now apply for digital savings account online. 

How to choose a Digital Savings Account?

There can be many reasons to open digital savings account online, but it is best to know the different saving accounts available out there and all the benefits and perks they offer before you zero in on one. If you are applying to open a digital savings account, then here are a few things you should be sure of – 

  1. Be it for emergency use, to earn interest off your idle money, saving for a short-term goal, or to simply keep your money secure in a bank, know what your goal is behind opening a digital savings account. 
  2. Be sure about the money you save in this account, and ask the bank about the redeeming option and conditions in advance
  3. Make sure you know if there is a minimum balance to be maintained every month 
  4. Ask how many deposits or withdrawals you can make in a month
  5. Enquire in detail about the features of the account

Once you know the core purpose of your digital savings account, it will become much easier to decide which account is best suited to you and the bank to approach for it. For example, some banks have a legacy of decades and are trustworthy just by the mere mention of their name, but they might not give you as much rate of interest as the other private banks and other competitor banks could offer. So, if earning a higher rate of interest on your saved amount is important to you, then you should be selecting a zero-balance saving account accordingly.

Once you know which type of savings account you want, all you have to do is open a digital bank account online! It only takes a few clicks to apply for one online, and reliable banks like Axis Bank take care of everything once you have started your process. Visit their website for more information.

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